A Lagos purchase becomes binding long before the keys change hands. The moment that matters most is the signing of the contrato promessa de compra e venda, the promissory contract that locks both buyer and seller into the deal months ahead of the final deed. British, Dutch, German and American buyers who understand this stage tend to move with confidence, while those who treat it as a formality can find themselves committed to terms they never fully read. With Lagos asking prices running at roughly €4,500 to €4,600 per square metre in 2026 on our reading of the idealista price index, the sums held at this point are substantial.
1. Where the Promissory Contract Sits in a Lagos Purchase
The promissory contract, known locally as the CPCV, is the agreement that binds a sale before the escritura, the notarised deed that transfers ownership. It follows an accepted offer and precedes completion, and it carries real legal weight under the Portuguese Civil Code. Once it is signed, neither side can walk away without consequence. In a market where well-located Lagos homes attract several competing viewings in a week, this is the document that takes a property off the table and fixes the deal for both parties.
- Signed after an offer is accepted and the terms are agreed
- Binding on both buyer and seller once executed
- Sitting weeks or months ahead of the final deed
- Governed by Portuguese law rather than by any agency
2. What the Sinal Deposit Commits You To
At signing the buyer pays a deposit called the sinal, typically 10 percent of the purchase price and sometimes up to 20 percent on new-build or negotiated deals. The sinal carries legal consequences under Article 442 of the Civil Code that protect both parties. A buyer who defaults without cause forfeits the deposit, and a seller who pulls out or sells elsewhere must return it in double.
- A deposit usually set at 10 percent of the agreed price
- Higher percentages common on off-plan and new-build purchases
- Forfeited to the seller if the buyer defaults without good reason
- Returned in double if the seller walks away from the deal
For a €600,000 Lagos apartment, a 10 percent sinal is €60,000, and a seller who later accepts a higher offer would owe €120,000 back. That symmetry is what gives the contract its teeth, and it is why the deposit stage is treated seriously on both sides of a western Algarve sale.
3. What the Contract Should Contain Before You Sign
The strength of a promissory contract lies in its detail. A well-drafted document records exactly what is being sold, at what price and on what conditions, leaving little room for dispute at completion. The legal due diligence sits with your own lawyer, who checks title, licences and any charges on the property before you commit.
- The full identity of buyer, seller and the registered property
- The agreed price and the schedule for the remaining balance
- Any conditions, such as mortgage approval or planning checks
- The habitation licence and energy certificate references
- A clear completion deadline for the deed
4. How Taxes and Costs Are Framed at This Stage
The promissory contract does not itself trigger the purchase taxes, which fall due around completion, but it is the point at which a buyer should have budgeted for them. From 1 September 2026 a non-resident buying a home for their own use pays a flat 7.5 percent IMT rate, while tax residents continue to use the progressive scale. Stamp duty at 0.8 percent and notary and registration fees apply to both, and rates can be confirmed through the Portal das Finanças as the deed approaches.
- A flat 7.5 percent IMT rate for a non-resident buying a home for their own use
- The progressive IMT scale still applying to tax residents and to buyers who have previously lived in Portugal
- Stamp duty, the Imposto do Selo, at 0.8 percent of the price
- All-in acquisition costs of roughly 8 to 10 percent of the price on a non-resident purchase
This is general information and not tax or legal advice. Portuguese tax rules and rates change and depend on your circumstances, so confirm the current position with a suitably qualified adviser before you commit.
5. Timelines Between Signing and the Deed
The gap between the promissory contract and the escritura is negotiable and usually runs 30 to 90 days. This window gives the buyer time to move funds, finalise any mortgage and complete checks, and it gives the seller certainty that the sale will proceed. Cash buyers can compress it, while those arranging finance often need the longer end of the range.
- A typical window of 30 to 90 days to completion
- Time to transfer funds and settle currency for non-eurozone buyers
- Space to finalise a Portuguese mortgage where one is used
- Room to resolve any conditions written into the contract
6. How Nationality Shapes the Approach
The buyers we guide through this stage behave in fairly predictable ways. British and American buyers, as non-EU residents, often move quickly once committed and pay close attention to the sterling or dollar cost of the deposit, which can shift by thousands between signing and completion. Dutch and German buyers tend to read the contract wording and the completion deadline in detail before they sign.
- British buyers watching the exchange rate on a sterling deposit
- American buyers, a fast-growing group, favouring clean and quick timelines
- Dutch buyers examining conditions and balance schedules closely
- German buyers focused on precise wording and completion dates
The Reality of Signing a Promissory Contract in Lagos in 2026
The promissory contract is the point at which a Lagos purchase stops being a possibility and becomes a commitment. Handled well, it protects your deposit, fixes your price and gives you a clear path to the deed. Handled carelessly, it can bind you to terms that are hard to unwind. Browsing houses and flats for sale in Lagos is the easy part, and the current property for sale in Lagos ranges widely in price and readiness, so the contract stage is where preparation earns its keep.
Ten Hoopen Realty guides buyers through each stage of a Lagos or Praia da Luz purchase, from the first viewing through to completion. If you are weighing a move in the western Algarve, we can help you find the right home and understand how the process runs before you sign, while the legal due diligence stays with your own lawyer. Getting the promissory contract right is what turns a serious offer into a completed purchase on the timetable that suits you.
